Sorry I have been a little sporadic lately with my posts, I’ve been under the weather for the past week. I’m starting to feel better so, don’t forget to check back for my posts every day. 😀
Ok, so today we’re going to talk about the economic data that were released.
CHF(Swiss Franc): It became evident in reports today that Switzerland has officially entered into a recession, the first in six years. The economy shrank by 0.1 percent in the third quarter. Exports and investments have weakened as a result.
Look at the daily chart for USD/CHF:
There is a lateral trend going on in this currency pair at the moment. In January, movement was to the upside but changed and became somewhat erratic in February. A few days up, the following two days down…that has been the pattern for the past month. Overall, the pair is worth trading in the short term, as soon as proper movement is being made and after thorough analysis is done. When making short term trades, it is important to keep in mind that the pair may change direction suddenly so, after you’ve made a satisfactory profit, the trade should be exited. As I’ve said before, it is easy to become overconfident especially if you see the money multiplying in your account, so do not be greedy when it comes to short term trading. When a definite trend is not in place, you never know how long the trade will be successful. Remember: It is better to lose an opportunity to trade than lose your capital.
CAD: The Bank of Canada cut its key benchmark rate by 50 basis points in an attempt to jolt the country’s economy back to life. The Canadian economy shrank at an annual rate of 3.4% in the 4th quarter of 2008 which was the biggest decline since the 1980s. It is expected that the country will not begin to recover from its recession until early 2010.
USD: Pending home sales fell 7.7% in January after a 4.8% increase in December. It was predicted that sales would fall 3.8%, but the actual figures was double that of the prediction.
Auto sales tumbled in February. GM sales fell 53%, the lowest in 30 years while Ford Motor Co. sales are down 48%. Toyota’s sales were also down 40%, Honda 38%, and Nissan 37%.
**Despite the negative economic news, the USD was up for most of the day.